$3 Gas Could Return This Fall

Gas_1

While the stock market plummets and job losses are at record highs, a lot of people may have missed the drastic drop in gas prices. The national average price of gas today is $3.50, according to AAA. That’s down from a record high of $4.11 this past July.

Experts say the price of gas would be even lower if not for the gas shortages in the South due to Hurricane Ike. $3 gas could be the norm once again, and that leaves us wondering if the drastic swing in purchases from large SUVs to smaller cars will reverse course.

Nearly every automaker has already shifted its production plans toward more fuel-efficient vehicles, and we doubt $3 gas will change those plans. Even if low gas prices are here to stay — for a while — the dismal economy may still prevent buyers from scooping up used and new SUVs despite significant discounts.

Gas prices in retreat
(BizJournals)

By David Thomas | October 6, 2008 | Comments (12)
Tags: In The News

Comments 

Tony

What's scary is that some people will think that gas goes down and will go back to large cars. Hopefully, a bad economy will stop them from buying new large cars. I would rather have high gas prices and good economy, so people go and buy small cars.
Same goes for driving.

Roo

Totally agree with you Tony. I can't believe that people can be short-sided enough to think now that fuel has gone down in price that it will stay that way forever. Didn't they learn their lesson four months ago when the price on oil peaked? I keep my fingers crossed that the economy will force consumers to continue buying smaller and less expensive cars, because the majority of American drivers really only need a compact car.

Juan Carlos

wait. you guys are hoping for a bad economy? what are you? osama? seriously. why can't you hope for an awesome economy and smaller cars? people have families to feed you know.

what? you aren't smart enough to seat down and have people make decisions that you think are smart? and this also shows why gas when up in the last few years. as people make more money (perhaps they shouldn't have made it), the more cars they will buy. they also bought boats and things like that. add the fact that credit was easy to get and you have more pople buying toyota tundras rather than buying honda civics. is a lesson is eonomics.

wouldn't it be great that we would make 50k and buy volts cars like the toyota prius?

Juan Carlos

like i said yestrday, gas could be $1 a galoon (or even free for that matter) and some people can't/shouldn't still get a hummer or even a corolla (used or new) because of their credit. unless people get an awesome deal, few of us won't be buying anything soon. my ford ranger must be in some junk yard if they are to get me to buy.

buying a new set of tires because i have to. when it comes time to get another new set, i just might get that new car with my GM points. every month i put aside $300 into my savings account like a car payment. just might get that car cash when the new set of tires need to go.

GR

Your ramblings make absolutely no sense, Juan Carlos.

Juan Carlos

even if true, at least i am not hoping people lose their jobs.

It is necessary to gas and oil price come down, because world economy in trouble and inflation on near all time high range.

markt

no one wants people to lose their jobs. the economy is forcing people to buy small cars, and i for one am happy this change occured. (not happy about people losing their jobs) even if gas goes to $2 a gallon, all the manufacturers have already started to downsize to small cars. i think the days of the monster truck are number.

jim

"$3 gas ... Even if low gas prices are here to stay"
When gas is $1 a gallon, we can call it low, but three isn't low. It plays right into oil companies hands, they jack the price to 4 bux, scale back a bit, and [most] folks are happy. No more bitchin..gas is $3! Wake up, people! Their snow job is working!

Tony

jim,
not only that. It is OPEC too. Also China, India. The gas will go back up, no doubt about. right now world's economy is crashing and this is sort of good thing because how long could we baloon? Economy has to normalize itself. See what low interest and e-z credit did to us? We need to go through it and we'll get back to normal as long as government will not make any dumb decisions. But I think, they couldn't help themselves already...

The economic conditions that caused the spur of smaller cars and innovation may have mixed results due to the effects they had on people's lives, no doubt. But weaning our nation off of oil and onto more renewable, cleaner, or easier to control sources of energy is still a virtue in and of itself.

Sure, I would have hoped that we could have gotten here without a recession, that the "free market" would have figured it out. Well, it kinda did. That free market is playing itself out right in front of our eyes and in our wallets. The best we can do is hunker down and allow a combination of public assistance and private innovation to get us out of this mess.

It's getting lower now but it'll go up again either this winter or next summer! People going out & buying SUV's again r gonna b sorry sooner than later!!

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